Following are the transactions for Valdez Services. a. The company paid $500 cash for payment on...

Transcribed Image Text:

Following are the transactions for Valdez Services. a. The company paid $500 cash for payment on a 3-month-old account payable for office supplies. b. The company paid $2,200 cash for the just-completed two-week salary of the receptionist. c. The company paid $42,000 cash for equipment purchased. d. The company paid $200 cash for this month's utilities. e. The company paid a $10,500 cash dividend to the owner (sole shareholder). 1. Prepare general journal entries for the above transactions of Valdez Services. 2. Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transaction it properly describes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transaction it properly describes. Reason This transaction is a distribution of cash to the owner. Even though equity decreased, that decrease did not occur in the process of providing goods or services to customers. This transaction decreased cash in settlement of a previously existing liability (equity did not change). Supplies expense is recorded when assets are used, not necessarily when cash is paid. This transaction involves the purchase of an asset. The form of the company's assets changed, but total assets did not (and neither did equity). < Required 1 Required 2 Transaction Following are the transactions for Valdez Services. a. The company paid $500 cash for payment on a 3-month-old account payable for office supplies. b. The company paid $2,200 cash for the just-completed two-week salary of the receptionist. c. The company paid $42,000 cash for equipment purchased. d. The company paid $200 cash for this month's utilities. e. The company paid a $10,500 cash dividend to the owner (sole shareholder). 1. Prepare general journal entries for the above transactions of Valdez Services. 2. Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transaction it properly describes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare general journal entries for the above transactions of Valdez Services. View transaction list Journal entry worksheet 1 2 Transaction a. 3 4 The company paid $500 cash for payment on a 3-month-old account payable for office supplies. Note: Enter debits before credits. Record entry 5 General Journal Clear entry Debit Credit View general journal > Following are the transactions for Valdez Services. a. The company paid $500 cash for payment on a 3-month-old account payable for office supplies. b. The company paid $2,200 cash for the just-completed two-week salary of the receptionist. c. The company paid $42,000 cash for equipment purchased. d. The company paid $200 cash for this month's utilities. e. The company paid a $10,500 cash dividend to the owner (sole shareholder). 1. Prepare general journal entries for the above transactions of Valdez Services. 2. Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transaction it properly describes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transaction it properly describes. Reason This transaction is a distribution of cash to the owner. Even though equity decreased, that decrease did not occur in the process of providing goods or services to customers. This transaction decreased cash in settlement of a previously existing liability (equity did not change). Supplies expense is recorded when assets are used, not necessarily when cash is paid. This transaction involves the purchase of an asset. The form of the company's assets changed, but total assets did not (and neither did equity). < Required 1 Required 2 Transaction Following are the transactions for Valdez Services. a. The company paid $500 cash for payment on a 3-month-old account payable for office supplies. b. The company paid $2,200 cash for the just-completed two-week salary of the receptionist. c. The company paid $42,000 cash for equipment purchased. d. The company paid $200 cash for this month's utilities. e. The company paid a $10,500 cash dividend to the owner (sole shareholder). 1. Prepare general journal entries for the above transactions of Valdez Services. 2. Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transaction it properly describes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare general journal entries for the above transactions of Valdez Services. View transaction list Journal entry worksheet 1 2 Transaction a. 3 4 The company paid $500 cash for payment on a 3-month-old account payable for office supplies. Note: Enter debits before credits. Record entry 5 General Journal Clear entry Debit Credit View general journal >

Answer rating: 100% (QA)

Journal Entry A journal entry is the process of recording or maintaining track of any financial or n... View the full answer